Home / Knowledge / News / Cotton / Global cotton prices forecast to fall in 2019-20, 2020-21

Global cotton prices forecast to fall in 2019-20, 2020-21

04
Jan '20
Pic: Shutterstock
Pic: Shutterstock
Cotton prices will remain weak in the 2019-20 and 2020-21 seasons as supplies of cotton outstrip demand and surpluses grow, according to a report in issue 200 of ‘Textile Outlook International’ by global business information firm Textiles Intelligence. One factor affecting cotton price is weak demand caused by uncertainty arising from the US-China trade war.

Until relations between the two countries improve, demand for cotton will remain suppressed and so will the cotton price, unless there are major revisions to crop estimates or there are signs of greater strength in the global economy, the company said in a press release.

In fact, the average price of cotton has been falling since the beginning of 2018-19, and in 2019-20 it is forecast to fall further to only 76 US cents/lb, which would be 11 US cents/lb lower than the average for 2018-19.

The continued weakness in cotton prices has been reinforced by an increase in the size of the global stockpile that has reversed recent declines. Indeed, surpluses are growing in the main producing nations, and stock levels at the end of the 2019-20 season (July 31, 2020) are expected to be 1.3 per cent higher than they were at the beginning (August 1, 2019).

Global consumption of cotton is expected to rise in the 2019-20 season as Chinese demand stabilises. But there is also expected to be a rise in global cotton production during 2019-20 as yields in India rebound and plantings increase in the United States. As a result, global cotton production will exceed demand, stocks will rise and this will put downward pressure on the cotton price, the report said.

This pressure on prices will continue into 2020-21 as demand is forecast to remain weak while yields are expected to improve as a consequence of better weather conditions. In fact, the global cotton crop in 2020-21 is forecast to reach its second highest level ever.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 28th Mar 2020

Worldwide lockdowns, stimulus shots, raised PPE production

The global response this week to the unfolding COVID-19 crisis saw...

Pic: Shutterstock

Apparel/Garments | On 28th Mar 2020

Vietnam may outdo Bangladesh as 2nd largest RMG exporter

Though Bangladesh is now the second-largest garment exporter...

Pic: Shutterstock

Textiles | On 28th Mar 2020

Morgan Stanley rules out economic depression

With COVID-19 badly damaging the global economy, Morgan Stanley...

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Cem Erdogrul,

Cem Erdogrul

Turkey-based Temsan Air Engineering is one of the leading manufacturers of ...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Bora Akris,

Bora Akris

Realkom, headquartered in Istanbul, is a fully integrated textile company...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


March 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search